RWJ Dividend Type Payments
Although RWJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Exchange-Traded Fund Trust II Invesco S&P SmallCap 600 Revenue E to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Invesco Exchange-Traded Fund Trust II Invesco S&P SmallCap 600 Revenue E (RWJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.25 | 45.35 | 42.53 | -0.35 | 155K | - | 0.4B |
RWJ Dividend-Like Income Using Covered Calls
With RWJ at 42.53, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 1.28 | 0.3 |
| 5% | 2.13 | 0.6 |
| 10% | 4.25 | 1.2 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | CELC dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | IREN dividend | |
| 5. | TLT dividend | 10. | QQQ dividend | 5. | CAPR dividend | |
Want more examples? RVSB Dividend | RWK Dividend
